News round-up: Manchester development deal, multi-year settlement offer, business rates powers, LGPS guidance
0New powers over pubs needed to save business rates
The Local Government Association (LGA) is calling for new powers enabling councils to suspend the licences of pubs, clubs and off-licences that wilfully fail to pay their business rates. The LGA said licensed premises are using bankruptcy law to avoid their rates obligations to the tune of millions of pounds a year. Newcastle City Council faces a debt of £1.47m accumulated on licensed outlets over several years. Simon Blackburn, the LGA’s licensing spokesman, said: “The government should close the phoenix company loophole by making it a legal requirement for directors of bankrupt companies who start up a new business to pay their old company’s business rate debts.”
Finance settlement consultation launched
Councils have until 14 October to accept an offer for four-year finance settlements, according to a consultation launched by the Department for Communities and Local Government (DCLG). The consultation re-emphasises that multi-year settlements, first offered in March this year, will only be given to councils that provide an efficiency plan covering the entire four-year period starting 2017-18. Councils that chose to decline the offer of a multi-year settlement will continue with their annual settlements.
Manchester regeneration developer chosen
The Mayfield Partnership (Manchester City Council and Transport for Greater Manchester) have chosen U+I to lead the £850m regeneration of a site next to Piccadilly Station in the city. Mayfield said: “There was firm consensus amongst the partnership that U+I’s bid successfully captured the vision for the site, set out in the Mayfield Strategic Regeneration Framework, for Mayfield to become a distinctive new high quality urban neighbourhood and a gateway into Manchester city centre.” The site covers 24 acres and plans include 1,300 new homes, 800,000 sq ft of office space, retail and leisure facilities, as well as a new park.
Scottish councils call for tax raising powers
Four local authorities in Scotland have called for new tax raising powers as a way of easing the burden of funding cuts. Aberdeen, Glasgow, Renfrewshire and South Lanarkshire have formed the Scottish Local Government Partnership (SLGP) to campaign for the new powers which they say could include rights over business rates, a tourism duty and a share of air passenger duty. Jenny Laing, leader of Aberdeen council, and a spokesperson for SLGP is quoted by the BBC saying: “Devolve tax-raising powers to councils now so we can shape and drive our own futures.”
Investment guidance for LGPS
The government has released new guidance aimed at reducing the “central prescription” over investment decisions in the Local Government Pensions Scheme. Published by the Department for Communities and Local Government, the guidance covers the production of investment strategy statements that must be published by 1 April 2017. The guidance said: “One of the main aims of the new investment regulations is to transfer investment decisions and their consideration more fully to administering authorities within a new prudential framework. Administering authorities will therefore be responsible for setting their policy on asset allocation, risk and diversity, amongst other things.”
